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The Building Society Insolvency (England and Wales) Rules 2010

S.I. 2010/2581 · Made 20 October 2010 · Extends to England and Wales

Up to date with all changes known to legislation.gov.uk, revised to 1 April 2013.

Building Societies, England And Wales

Insolvency, England And Wales

Made 20th October 2010

Laid before Parliament 25th October 2010

Coming into force 15th November 2010

The Lord Chancellor makes the following Rules in exercise of his powers under section 411(1A)(a), (2), (2C),(3) and (3A) of the Insolvency Act 1986f1.

The Treasury concur in the making of the Rules.

The Chancellor of the High Court (by the authority of the Lord Chief Justice under section 411(7)f2 of the Insolvency Act 1986) concurs in the making of the Rules in so far as they affect court procedure.

The Lord Chancellor has not consulted the Committee existing for the purposes of section 413 of the Insolvency Act 1986: this is the first set of rules made in relation to building society insolvency and the duty to consult does not therefore apply to these Rules by virtue of article 16 of the Building Societies (Insolvency and Special Administration) Order 2009f3.

Annotations to the whole text

Footnotes

f1

1986 c.45. Section 411 was amended by the Banking Act 2009 (c.1), section 125. Subsection 3(A) was inserted by S.I. 2009/805.

f2

Section 411(7) was added by the Constitutional Reform Act 2005 (c.4), section 15 and Schedule 4, paragraphs 185 and 188.

f3

S.I. 2009/805, amended by S.I. 2010/1189.

Contents

  1. Part 1: INTRODUCTORY PROVISIONS
  2. 1Citation and commencement
  3. 2Extent
  4. 3Application of Rules, construction and interpretation
  5. 4Overview
  6. 5Forms
  7. 6Time limits
  8. Part 2: APPLICATION FOR ORDER
  9. 7Filing of application
  10. 8Service of application
  11. 9Proof of service
  12. 10Other persons to receive copy of application
  13. 11Verification of application
  14. 12Persons entitled to copy of application
  15. 13Certificate of compliance
  16. 14Leave for the applicant to withdraw
  17. 15Witness statement in opposition
  18. 16Making, transmission and advertisement of order
  19. 17Authentication of building society liquidator’s appointment
  20. 18Initial duties of building society liquidation committee
  21. 19Expenses of voluntary arrangement
  22. Part 3: PROVISIONAL BUILDING SOCIETY LIQUIDATOR
  23. 20Appointment of provisional building society liquidator
  24. 21Notice of appointment
  25. 22Order of appointment
  26. 23Security
  27. 24Failure to give or keep up security
  28. 25Remuneration
  29. 26Termination of appointment
  30. Part 4: STATEMENT OF AFFAIRS AND OTHER INFORMATION
  31. 27Notice requiring statement of affairs
  32. 28Verification and filing
  33. 29Limited disclosure
  34. 30Release from duty to submit statement of affairs; extension of time
  35. 31Expenses of statement of affairs
  36. 32Submission of accounts
  37. 33Further disclosure
  38. Part 5: INFORMATION TO CREDITORS AND CONTRIBUTORIES
  39. 34Report by building society liquidator
  40. 35Meaning of “creditors”
  41. 36Report where statement of affairs lodged
  42. 37Statement of affairs dispensed with
  43. 38General rule as to reporting
  44. 39Building society insolvency stayed
  45. Part 6: MEETINGS OF CREDITORS AND CONTRIBUTORIES
  46. 40Meaning of “contributories”
  47. 41First meeting
  48. 42Business at first meetings of creditors and contributories
  49. 43General power to call meetings
  50. 44The chair at meetings
  51. 45Requisitioned meetings: general
  52. 46Requisitioned meetings: reforming the liquidation committee
  53. 47Attendance at meetings of building society’s personnel
  54. 48Notice of meetings by advertisement only
  55. 49Venue
  56. 50Expenses of summoning meetings
  57. 51Resolutions
  58. 52Chair of meeting as proxy–holder
  59. 53Suspension and adjournment
  60. 54Entitlement to vote (creditors)
  61. 55Entitlement to vote (contributories)
  62. 56Admission and rejection of proof (creditors’ meetings)
  63. 57Record of proceedings
  64. Part 7: PROOF OF DEBTS
  65. 58Meaning of “prove”
  66. 59Supply of forms
  67. 60Contents of proof
  68. 61Claim established by witness statement
  69. 62Cost of proving
  70. 63Building society liquidator to allow inspection of proofs
  71. 64New building society liquidator appointed
  72. 65Admission and rejection of proofs for dividend
  73. 66Appeal against decision on proof
  74. 67Withdrawal or variation of proof
  75. 68Expunging of proof by the court
  76. 69Estimate of quantum
  77. 70Negotiable instruments, etc.
  78. 71Secured creditors
  79. 72Discounts
  80. 73Mutual credits and set–off
  81. 74Disapplication of set-off for eligible depositors
  82. 75Debt in foreign currency
  83. 76Payments of a periodical nature
  84. 77Interest
  85. 78Debt payable at future time
  86. Part 8: SECURED CREDITORS
  87. 79Value of security
  88. 80Surrender for non–disclosure
  89. 81Redemption by liquidator
  90. 82Test of security’s value
  91. 83Realisation of security by creditor
  92. Part 9: THE BUILDING SOCIETY LIQUIDATOR
  93. Chapter 1: GENERAL
  94. 84Remuneration of building society liquidator
  95. 85Replacement of building society liquidator by creditors
  96. 86Authentication of building society liquidator’s appointment
  97. 87Appointment to be advertised and registered
  98. Chapter 2: RESIGNATION AND REMOVAL
  99. 88Creditors’ meeting to be notified of the building society liquidator’s resignation
  100. 89Action following acceptance of resignation
  101. 90Advertisement of resignation
  102. 91Meeting of creditors to remove building society liquidator
  103. 92Court’s power to regulate meetings under rule 89
  104. 93Procedure on removal
  105. 94Advertisement of removal
  106. 95Removal of building society liquidator by the court
  107. 96Release of resigning or removed building society liquidator
  108. Chapter 3: RELEASE ON COMPLETION OF WINDING UP
  109. 97Final meeting
  110. 98Rule as to reporting
  111. Chapter 4: REMUNERATION
  112. 99Fixing of remuneration
  113. 100Building society liquidator’s entitlement to remuneration where it is not fixed under rule 99
  114. 101Building society liquidator’s remuneration where he realises assets on behalf of chargeholder
  115. 102Other matters affecting remuneration
  116. 103Recourse of building society liquidator to meeting of creditors
  117. 104Recourse to the court
  118. 105Creditors’ claim that remuneration is excessive
  119. 106Primacy of Objective 1
  120. Chapter 5: SUPPLEMENTARY PROVISIONS
  121. 107Replacement building society liquidator
  122. 108Building society liquidator deceased
  123. 109Loss of qualification as insolvency practitioner
  124. 110Resignation of the building society liquidator
  125. 111Notice to Bank of England of intention to vacate office
  126. 112Building society liquidator’s duties on vacating office
  127. 113Power of court to set aside certain transactions
  128. 114Rule against solicitation
  129. Part 10: THE LIQUIDATION COMMITTEE
  130. 115Application of rules in this Part
  131. 116Membership of committee
  132. 117Formalities of establishment
  133. 118Committee established by contributories
  134. 119Obligations of liquidator to committee
  135. 120Meetings of the committee
  136. 121The chair at meetings
  137. 122Quorum
  138. 123Committee–members’ representatives
  139. 124Resignation
  140. 125Termination of membership
  141. 126Removal
  142. 127Vacancy (creditor members)
  143. 128Vacancy (contributory members)
  144. 129Voting rights and resolutions
  145. 130Resolutions by post
  146. 131Liquidator’s reports
  147. 132Expenses of members, etc.
  148. 133Dealings by committee–members and others
  149. 134Composition of committee when creditors paid in full
  150. 135Committee’s functions vested in the Secretary of State
  151. 136Formal defects
  152. Part 11: COLLECTION AND DISTRIBUTION OF BUILDING SOCIETY’S ASSETS BY BUILDING SOCIETY LIQUIDATOR
  153. 137General duties of building society liquidator
  154. 138General qualification on powers
  155. 139Manner of distributing assets
  156. 140Debts of insolvent building society to rank equally
  157. 141Supplementary provisions as to dividend
  158. 142Division of unsold assets
  159. 143General powers of the liquidator
  160. 144Enforced delivery up of building society’s property
  161. 145Final distribution
  162. Part 12: DISCLAIMER
  163. 146Liquidator’s notice of disclaimer
  164. 147Communication of disclaimer to persons interested
  165. 148Additional notices
  166. 149Duty to keep court informed
  167. 150Application by interested party under section 178(5)
  168. 151Interest in property to be declared on request
  169. 152Disclaimer presumed valid and effective
  170. 153Application for exercise of court’s powers under s 181
  171. Part 13: SETTLEMENT OF LIST OF CONTRIBUTORIES
  172. 154Preliminary
  173. 155Primacy of Objective 1
  174. 156Duty of liquidator to settle list
  175. 157Form of list
  176. 158Procedure for settling list
  177. 159Application to court for variation of the list
  178. 160Variation of, or addition to, the list
  179. 161Costs not to fall on building society liquidator
  180. Part 14: CALLS
  181. 162Calls by building society liquidator
  182. 163Control by building society liquidation committee
  183. 164Application to court for leave to make a call
  184. 165Making and enforcement of the call
  185. Part 15: SPECIAL MANAGER
  186. 166Appointment and remuneration
  187. 167Security
  188. 168Failure to give or keep up security
  189. 169Accounting
  190. 170Termination of appointment
  191. Part 16: ORDER OF PAYMENT AS TO COSTS, ETC. OUT OF ASSETS
  192. 171General rule as to priority
  193. 172Litigation expenses and property subject to a floating charge–general application
  194. 173Litigation expenses and property subject to a floating charge–requirement for approval or authorisation
  195. 174Litigation expenses and property subject to a floating charge–request for approval or authorisation
  196. 175Litigation expenses and property subject to a floating charge–grant of approval or authorisation
  197. 176Litigation expenses and property subject to a floating charge–application to court by the building society liquidator
  198. 177Saving for powers of the court
  199. Part 17: MISCELLANEOUS RULES
  200. Chapter 1: RETURN OF CAPITAL
  201. 178Application to court for order authorising return of capital
  202. 179Procedure for return of capital
  203. Chapter 2: CONCLUSION OF BUILDING SOCIETY INSOLVENCY
  204. 180Appropriate regulator’s directions under section 116 of the Banking Act
  205. 181Procedure following appeal under section 116 of the Banking Act
  206. Part 18: COURT PROCEDURE AND PRACTICE
  207. Chapter 1: APPLICATIONS (GENERAL)
  208. 182Preliminary
  209. 183Interpretation
  210. 184Form and contents of application
  211. 185Application under section 176A(5) to disapply section 176A
  212. 186Filing and service of application
  213. 187Notice of application under section 176A(5)
  214. 188Other hearings without notice
  215. 189Hearing of application
  216. 190Use of evidence
  217. 191Filing and service of witness statements
  218. 192Use of reports
  219. 193Adjournment of hearings: directions
  220. Chapter 2: SHORTHAND WRITERS
  221. 194Nomination and appointment of shorthand writers
  222. 195Remuneration
  223. Chapter 3: ENFORCEMENT PROCEDURES
  224. 196Enforcement of court orders
  225. 197Orders enforcing compliance with the Rules
  226. 198Warrants (general provisions)
  227. 199Warrants under section 236
  228. Chapter 4: COURT RECORDS AND RETURNS
  229. 200Title of proceedings
  230. 201Court records
  231. 202Inspection of records
  232. 203File of court proceedings and inspection
  233. Chapter 5: COSTS AND DETAILED ASSESSMENT
  234. 204Application of the CPR
  235. 205Requirement to assess costs by the detailed procedure
  236. 206Procedure where detailed assessment required
  237. 207Costs of officers charged with executions of writs or other process
  238. 208Costs paid otherwise than out of the insolvent estate
  239. 209Award of costs against responsible insolvency practitioner
  240. 210Application for costs
  241. 211Costs and expenses of witnesses
  242. 212Final costs certificate
  243. Chapter 6: PERSONS INCAPABLE OF MANAGING THEIR AFFAIRS
  244. 213Introductory
  245. 214Appointment of another person to act
  246. 215Witness statement in support of application
  247. 216Service of notices following appointment
  248. Chapter 7: APPEALS IN BUILDING SOCIETY INSOLVENCY PROCEEDINGS
  249. 217Appeals and review of court orders
  250. 218Procedure on appeal
  251. 219Appeal against a decision of the Secretary of State
  252. Chapter 8: GENERAL
  253. 220Principal court rules and practice to apply
  254. 221Right of attendance
  255. 222Restriction on concurrent proceedings and remedies
  256. 223Security in court
  257. 224Payment into court
  258. 225Further information and disclosure
  259. 226Office copies of documents
  260. Part 19: PROXIES
  261. 227Definition of “proxy”
  262. 228Issue and use of forms
  263. 229Use of proxies at meetings
  264. 230Retention of proxies
  265. 231Right of inspection
  266. 232Proxy–holder with financial interest
  267. Part 20: EXAMINATION OF PERSONS CONCERNED IN BUILDING SOCIETY INSOLVENCY
  268. 233Preliminary
  269. 234Form and contents of application
  270. 235Order for examination, etc.
  271. 236Procedure for examination
  272. 237Record of examination
  273. 238Costs of proceedings
  274. Part 21: DECLARATION AND PAYMENT OF DIVIDEND
  275. 239Preliminary
  276. 240Notice of intended dividend
  277. 241Final admission/rejection of proofs
  278. 242Postponement or cancellation of dividend
  279. 243Decision to declare dividend
  280. 244Notice of declaration
  281. 245Notice of no, or no further, dividend
  282. 246Proof altered after payment of dividend
  283. 247Secured creditors
  284. 248Disqualification from dividend
  285. 249Assignment of right to dividend
  286. 250Preferential creditors
  287. 251Debt payable at future time
  288. Part 22: MISCELLANEOUS AND GENERAL
  289. 252Power of Secretary of State or Treasury to regulate certain matters
  290. 253Costs, expenses, etc.
  291. 254Provable debts
  292. 255Notices
  293. 256Quorum at meeting of creditors or contributories
  294. 257Evidence of proceedings at meetings
  295. 258Documents issuing from Secretary of State
  296. 259Insolvency practitioner’s security
  297. 260Time limits
  298. 261Service by post
  299. 262General provisions as to service
  300. 263Service outside the jurisdiction
  301. 264Confidentiality of documents
  302. 265Notices sent simultaneously to the same person
  303. 266Right to copy documents
  304. 267Charge for copy documents
  305. 268Non–receipt of notice of meeting
  306. 269Right to have list of creditors
  307. 270False claim of status as creditor, etc
  308. 271Execution overtaken by judgement debtor’s insolvency
  309. 272The Gazette
  310. 273Punishment of offences
  311. 274Notice of order under section 176A(5)
  312. Part 23: INTERPRETATION
  313. 275Introductory
  314. 276“The court”; “the registrar”
  315. 277“Give notice”, etc.
  316. 278Notice, etc. to solicitors
  317. 279Notice to joint building society liquidators
  318. 280“Insolvent estate”
  319. 281“Responsible insolvency practitioner”, etc.
  320. 282“The appropriate fee”
  321. 283“Debt”, “liability”
  322. 284Expressions used generally
  323. 285The Schedule
  324. Signature
  325. Schedule
  326. 1Paragraph 1
  327. Explanatory note